Binance Australia subsidiary fined A$10 million for violating user classification rules

According to the Wall Street Journal, the Federal Court of Australia ruled that Binance's local derivatives division would have to pay an additional civil fine of 10 million Australian dollars (approximately US$6.9 million). The fine is in addition to the compensation paid by Binan to affected customers of approximately A$13.1 million in 2023.<br /> The Australia Securities and Investments Commission (ASIC) pointed out that the unit mistakenly classified 524 retail investors as wholesale customers between July 2022 and April 2023, exposing them to high-risk derivatives without consumer protection, resulting in losses and expenses of more than A$12 million.<br /> ASIC Chairman Joe Longo said the result was a clear warning to financial services providers seeking to do business in Australia. A Binance spokesperson said that the issue had been rectified in 2023, and the related subsidiary Oztures had stopped its derivatives business and cancelled its license.